Energy storage inverter industry chain

Are energy storage inverters a challenge to existing integrators?

With significant project pipelines dwarfing the existing installed base, energy storage inverter (power conversion system – PCS) manufacturers are expanding their presence targeting solar plus storage applications and existing integrators are challenging the incumbents.

Why are inverter manufacturers targeting the United States market?

Inverter manufacturers such as Sungrow are increasingly targeting the United States market because of the significant pipeline of solar-plus-storage projects, which play into the experience gained and distribution channels established in the solar industry.

How is the energy storage industry changing?

The global energy storage industry continues to rapidly expand, creating opportunities for new entrants and incumbents alike. As the market grows, many system integrators are evolving their business model to create a stronger competitive footing.

Why is the battery supply chain so diversified?

A large base of battery manufacturers – especially for LFP batteries – as well as inverter manufacturers, lead to a highly diversified supply chain with many players looking to capitalise from a growing stationary energy storage market.

What is the growth rate of industrial energy storage?

The majority of the growth is due to forklifts (8% CAGR). UPS and data centers show moderate growth (4% CAGR) and telecom backup battery demand shows the lowest growth level (2% CAGR) through 2030. Figure 8. Projected global industrial energy storage deployments by application

Why are Tier 2 inverter and battery manufacturers entering the Chinese market?

Tier 2 inverter and battery manufacturers are also pushing into the market with very low-cost systems using LFP batteries. Overall, low prices and the strong links between grid companies and local suppliers create an environment that limits the opportunities for international players enter the Chinese market.